Volkswagen’s Tiguan was in trouble from the very beginning. After VW unveiled the Concept A crossover, it was widely understood that this presaged a “Golf SUV” that would be known as “Marrakesh.” Political figures and leaders in the automotive industry alike used the name. Volkswagen’s media and marketing departments had their hands full informing the industry that its upcoming crossover would not be called Marrakesh and that it would not be based on the Golf. Perhaps in an effort to ensure that the Marrakesh name was dead and buried, Volkswagen enlisted the readers of German publication Auto Bild to name its new crossover. After 350,000 German enthusiasts cast their votes, the Tiguan was born.

The German automaker had high hopes for the Tiguan from the outset. A fresh entrant in an ever-growing segment, the Tiguan should’ve served as a cornerstone in Volkswagen’s ambitious goal to sell 800,000 vehicles annually in the U.S. Despite fondness afforded the vehicle by ourselves and our colleagues, the small crossover has performed woefully in American sales. Just 30,000 units were sold last year. Meanwhile, Nissan moved 162,000 Rogues, 218,000 Toyota RAV4s found new homes, and Honda sold 304,000 CR-Vs. Even the Acura RDX outsold the little VeeDub. The sheer volume of the segment makes it one VW can’t afford to get wrong, so it’s no surprise that there are ongoing discussions in Wolfsburg on how to proceed.

The brand’s highest hopes rest on a larger SUV, which has been previewed by the CrossBlue concept and confirmed by CEO Martin Winterkorn for a 2016 market introduction. But a new Tiguan, which is about two years away, has an important role to play as well, and there are two schools of thought at Volkswagen as to what that role will be. The first thought is to keep the Tiguan as it is, emphasizing its pedigree as a sporty, European, truly small crossover. The other idea would see the Tiguan grow to better accommodate export markets: more rear-passenger space for Chinese-market vehicles and more trunk space, and possibly three-row seating, for Americans. There’s also discussion about a sportier version with a lower roofline, a sort of Tiguan coupe modeled after the brand’s Cross Coupé concept.

Sources tell us that the Tiguan is likely to grow ever so slightly, but a seven-seater version probably won’t happen. Such a model would step on the toes of the upcoming U.S.-built production-spec CrossBlue. A low-slung coupe is possible, but we wouldn’t hold our breath; the niche between the Tiguan and the Audi Q3 likely would be too small to fill.

Whether it comes with five seats or seven, the next Tiguan must meet a few requirements if it’s to make an impact here: it must offer more room, it must become more efficient, and it must get cheaper. If Volkswagen can’t meet those criteria, it will continue to lose out in the U.S. and to the competition in what’s become an extraordinarily important segment globally.